77th OREGON LEGISLATIVE ASSEMBLY--2013 Regular Session
NOTE: Matter within { + braces and plus signs + } in an
amended section is new. Matter within { - braces and minus
signs - } is existing law to be omitted. New sections are within
{ + braces and plus signs + } .
LC 3767
Senate Bill 738
Sponsored by Senator FERRIOLI; Senators BAERTSCHIGER JR, BOQUIST,
CLOSE, GEORGE, GIROD, HANSELL, KNOPP, KRUSE, OLSEN, STARR,
THOMSEN, WHITSETT, WINTERS
SUMMARY
The following summary is not prepared by the sponsors of the
measure and is not a part of the body thereof subject to
consideration by the Legislative Assembly. It is an editor's
brief statement of the essential features of the measure as
introduced.
Modifies provisions relating to public employee retirement.
Directs Public Employees Retirement Board to recalculate
employer contribution rates to reflect savings attributable to
Act.
Provides for expedited review by Supreme Court upon petition by
adversely affected party.
Declares emergency, effective on passage.
A BILL FOR AN ACT
Relating to public employee retirement; creating new provisions;
amending ORS 237.635, 237.637, 238.005, 238.285, 238.300,
238.360, 238.372, 238.374, 238.376, 238.378, 238.580, 238A.210,
238A.320, 292.180 and 314.840 and section 4, chapter 1, Oregon
Laws 2010; repealing ORS 238.350 and 238.355; and declaring an
emergency.
Whereas every Oregonian deserves to have a high-quality public
education and to live in a safe community and reasonably expects
efficient and effective delivery of other needed public services;
and
Whereas the cost of Oregon's Public Employees Retirement System
(PERS) is increasing at an unsustainable rate and diverting
billions of dollars away from schools and other critical
services; and
Whereas Oregon's schools have been forced to reduce
instructional days, close schools and cut approximately 7,000
teachers over the last three years despite increased state
spending on education; and
Whereas PERS is the largest single source of cost escalation
driving these cuts; and
Whereas the annual cost of PERS is expected to increase
significantly over the next decade or more, placing at risk
schools, public safety, the poor and seniors who depend on state
assistance; and
Whereas it is the responsibility of the Legislative Assembly to
ensure that PERS is adequately funded, rationally designed as one
element of a reasonably competitive compensation arrangement for
public employees and sustainable for the sake of public
employees, who may rely on PERS for a material part of their
retirement, and for Oregonians generally, who rightly expect the
state to use taxpayer dollars responsibly; and
Whereas in 2011 the Governor proposed and the Legislative
Assembly passed comprehensive education reform based on the
aspirational goal of enabling 40 percent of adult Oregonians to
have at least a bachelor's degree, 40 percent of adult Oregonians
to have at least an associate's degree and the remaining 20
percent of adult Oregonians to have at least a high school
diploma; and
Whereas later that year an increase in PERS costs resulted in
massive layoffs of teachers, fewer instructional days for
students and the closings of schools; and
Whereas the PERS cost increase this year will drain hundreds of
millions of dollars more out of schools and cripple Oregon's
efforts to achieve its educational goals; and
Whereas it is necessary for the Legislative Assembly to reform
PERS, so that the state may provide critical services efficiently
and effectively and provide a long-term, financially sound
retirement system for public employees; and
Whereas the savings from the reforms set forth in this 2013 Act
could facilitate the hiring or retention of thousands of public
employees, including teachers, police officers and firefighters;
and
Whereas it is the intent of the Legislative Assembly that the
savings realized by schools and agencies as a result of this 2013
Act be used, to the maximum extent possible, to provide services
that Oregonians need; and
Whereas the Legislative Assembly accordingly urges that school
districts use funds saved as a result of this 2013 Act to reduce
class sizes, restore instructional days and hire 5,000 or more
teachers throughout this state; and
Whereas the Oregon Business Plan enjoys broad bipartisan
support as a strategy for creating jobs and growing wages; and
Whereas reform of the Public Employees Retirement System is a
top priority in the Oregon Business Plan because it is critical
to funding vital public services and especially education; now,
therefore,
Be It Enacted by the People of the State of Oregon:
{ +
LIMITATION ON COST OF LIVING ADJUSTMENT + }
SECTION 1. ORS 238.360 is amended to read:
238.360. (1) As soon as practicable after January 1 each year,
the Public Employees Retirement Board shall determine the
percentage increase or decrease in the cost-of-living for the
previous calendar year, based on the Consumer Price Index
(Portland area-all items) as published by the Bureau of Labor
Statistics of the U.S. Department of Labor for the Portland,
Oregon, area. Prior to July 1 each year { + , the board shall
adjust + } the allowance which the member or the member's
beneficiary is receiving or is entitled to receive on August 1
for the month of July { - shall be multiplied - } { + by
multiplying the allowance or the maximum monthly amount
determined under subsection (6) of this section, whichever is
less, + } by the percentage figure determined { - , and the
allowance for the next 12 months beginning July 1 adjusted to the
resultant amount - } { + by the board and adding the resultant
amount to the allowance + }.
{ + (2) The allowance shall be adjusted under subsection (1)
of this section for the next 12 months beginning July 1. + }
{ - (2) - } { + (3) + } { - Such - } { + An + }
increase or decrease { - shall - } { + under subsection (1)
of this section may + } not exceed two percent of any monthly
retirement allowance in any year and { - no - } { + an + }
allowance
{ - shall - } { + may not + } be adjusted to an amount less
than the amount to which the recipient would be entitled if no
cost-of-living adjustment were authorized.
{ - (3) - } { + (4) + } The amount of any cost-of-living
increase or decrease in any year in excess of the maximum annual
retirement allowance adjustment { - of two percent - } shall
be accumulated from year to year and included in the computation
of increases or decreases in succeeding years.
{ - (4) - } { + (5) + } Any increase in the allowance shall
be paid from contributions of the public employer under ORS
238.225. Any decrease in the allowance shall be returned to the
employer in the form of a credit against contributions of the
employer under ORS 238.225.
{ + (6) Except as provided in section 5 of this 2013 Act, to
determine the maximum monthly amount to which the cost-of-living
adjustment provided for in subsection (1) of this section may be
applied, the board shall multiply the maximum monthly amount for
the previous year by the percentage increase or decrease
determined by the board under subsection (1) of this section. + }
SECTION 2. { + The amendments to ORS 238.360 by section 1 of
this 2013 Act apply to all members of the Public Employees
Retirement System, regardless of the date the member retires. + }
SECTION 3. ORS 238A.210 is amended to read:
238A.210. (1) As soon as practicable after January 1 each year,
the Public Employees Retirement Board shall determine the
percentage increase or decrease in the cost of living for the
previous calendar year, based on the Portland-Salem, OR-WA,
Consumer Price Index for All Urban Consumers for All Items, as
published by the Bureau of Labor Statistics of the United States
Department of Labor. Before July 1 each year, the board shall
adjust every pension payable under ORS 238A.180, 238A.185 and
238A.190, every disability benefit under ORS 238A.235 and every
death benefit payable under ORS 238A.230 by multiplying the
monthly payment { + or the maximum monthly amount determined
under subsection (5) of this section, whichever is less, + } by
the percentage figure determined by the board { + and adding the
resultant amount to the monthly payment + }.
{ + (2) The adjustment under subsection (1) of this section
shall be made for the payments payable on August 1 and
thereafter.
(3) + } If a person has been receiving a pension or benefit for
less than 12 months on July 1 of a calendar year, the board shall
make a pro rata reduction of the adjustment { + under subsection
(1) of this section + } based on the number of months that the
pension or benefit was received before July 1 of the year.
{ - The adjustment shall be made for the payments payable on
August 1 and thereafter. - }
{ - (2) - } { + (4) + } An increase or decrease in the
benefit payments under this section may not exceed two percent in
any year. A pension or death benefit may not be adjusted to an
amount that is less than the amount that would have been payable
if no cost-of-living adjustment had been made since the pension
or death benefit first became payable.
{ + (5) Except as provided in section 5 of this 2013 Act, to
determine the maximum monthly amount to which the cost-of-living
adjustment provided for in subsection (1) of this section may be
applied, the board shall multiply the maximum monthly amount for
the previous year by the percentage increase or decrease
determined by the board under subsection (1) of this section. + }
SECTION 4. { + The amendments to ORS 238A.210 by section 3 of
this 2013 Act apply to all members of the Public Employees
Retirement System, regardless of the date the member retires,
becomes disabled or dies. + }
SECTION 5. { + (1) The maximum monthly amount to which the
cost-of-living adjustment under ORS 238.360 may be applied for
the 12 months beginning July 1, 2014, is $2,000.
(2) The maximum monthly amount to which the cost-of-living
adjustment under ORS 238A.210 may be applied for payments payable
between August 1, 2014, and July 31, 2015, is $2,000. + }
{ +
CALCULATION OF FINAL AVERAGE SALARY + }
SECTION 6. { + ORS 238.350 and 238.355 are repealed. + }
SECTION 7. ORS 238.005, as amended by section 30, chapter 54,
Oregon Laws 2012, is amended to read:
238.005. For purposes of this chapter:
(1) 'Active member' means a member who is presently employed by
a participating public employer in a qualifying position and who
has completed the six-month period of service required by ORS
238.015.
(2) 'Annuity' means payments for life derived from
contributions made by a member as provided in this chapter.
(3) 'Board' means the Public Employees Retirement Board.
(4) 'Calendar year' means 12 calendar months commencing on
January 1 and ending on December 31 following.
(5) 'Continuous service' means service not interrupted for more
than five years, except that such continuous service shall be
computed without regard to interruptions in the case of:
(a) An employee who had returned to the service of the employer
as of January 1, 1945, and who remained in that employment until
having established membership in the Public Employees Retirement
System.
(b) An employee who was in the armed services on January 1,
1945, and returned to the service of the employer within one year
of the date of being otherwise than dishonorably discharged and
remained in that employment until having established membership
in the Public Employees Retirement System.
(6) 'Creditable service' means any period of time during which
an active member is being paid a salary by a participating public
employer and for which benefits under this chapter are funded by
employer contributions and earnings on the fund. For purposes of
computing years of 'creditable service,' full months and major
fractions of a month shall be considered to be one-twelfth of a
year and shall be added to all full years. ' Creditable service'
includes all retirement credit received by a member.
(7) 'Earliest service retirement age' means the age attained by
a member when the member could first make application for
retirement under the provisions of ORS 238.280.
(8) 'Employee' includes, in addition to employees, public
officers, but does not include:
(a) Persons engaged as independent contractors.
(b) Seasonal, emergency or casual workers whose periods of
employment with any public employer or public employers do not
total 600 hours in any calendar year.
(c) Persons, other than workers in the Oregon Industries for
the Blind under ORS 346.190, provided sheltered employment or
made-work by a public employer in an employment or industries
program maintained for the benefit of such persons.
(d) Persons employed and paid from federal funds received under
a federal program intended primarily to alleviate unemployment.
However, any such person shall be considered an ' employee' if
not otherwise excluded by paragraphs (a) to (c) of this
subsection and the public employer elects to have the person so
considered by an irrevocable written notice to the board.
(e) Persons who are employees of a railroad, as defined in ORS
824.020, and who, as such employees, are included in a retirement
plan under federal railroad retirement statutes. This paragraph
shall be deemed to have been in effect since the inception of the
system.
(9) 'Final average salary' means whichever of the following is
greater:
(a) The average salary per calendar year paid by one or more
participating public employers to an employee who is an active
member of the system in three of the calendar years of membership
before the effective date of retirement of the employee, in which
three years the employee was paid the highest salary. The three
calendar years in which the employee was paid the largest total
salary may include calendar years in which the employee was
employed for less than a full calendar year. If the number of
calendar years of active membership before the effective date of
retirement of the employee is three or fewer, the final average
salary for the employee is the average salary per calendar year
paid by one or more participating public employers to the
employee in all of those years, without regard to whether the
employee was employed for the full calendar year.
(b) One-third of the total salary paid by a participating
public employer to an employee who is an active member of the
system in the last 36 calendar months of active membership before
the effective date of retirement of the employee.
(10) 'Firefighter' does not include a volunteer firefighter,
but does include:
(a) The State Fire Marshal, the chief deputy fire marshal and
deputy state fire marshals; and
(b) An employee of the State Forestry Department who is
certified by the State Forester as a professional wildland
firefighter and whose primary duties include the abatement of
uncontrolled fires as described in ORS 477.064.
(11) 'Fiscal year' means 12 calendar months commencing on July
1 and ending on June 30 following.
(12) 'Fund' means the Public Employees Retirement Fund.
(13) 'Inactive member' means a member who is not employed in a
qualifying position, whose membership has not been terminated in
the manner described by ORS 238.095 and who is not retired for
service or disability.
(14) 'Institution of higher education' means a public
university listed in ORS 352.002, the Oregon Health and Science
University and a community college, as defined in ORS 341.005.
(15) 'Member' means a person who has established membership in
the system and whose membership has not been terminated as
described in ORS 238.095. 'Member' includes active, inactive and
retired members.
(16) 'Member account' means the regular account and the
variable account.
(17) 'Normal retirement age' means:
(a) For a person who establishes membership in the system
before January 1, 1996, as described in ORS 238.430, 55 years of
age if the employee retires at that age as a police officer or
firefighter or 58 years of age if the employee retires at that
age as other than a police officer or firefighter.
(b) For a person who establishes membership in the system on or
after January 1, 1996, as described in ORS 238.430, 55 years of
age if the employee retires at that age as a police officer or
firefighter or 60 years of age if the employee retires at that
age as other than a police officer or firefighter.
(18) 'Pension' means annual payments for life derived from
contributions by one or more public employers.
(19) 'Police officer' includes:
(a) Employees of institutions defined in ORS 421.005 as
Department of Corrections institutions whose duties, as assigned
by the Director of the Department of Corrections, include the
custody of persons committed to the custody of or transferred to
the Department of Corrections and employees of the Department of
Corrections who were classified as police officers on or before
July 27, 1989, whether or not such classification was authorized
by law.
(b) Employees of the Department of State Police who are
classified as police officers by the Superintendent of State
Police.
(c) Employees of the Oregon Liquor Control Commission who are
classified as liquor enforcement inspectors by the administrator
of the commission.
(d) Sheriffs and those deputy sheriffs or other employees of a
sheriff whose duties, as classified by the sheriff, are the
regular duties of police officers or corrections officers.
(e) Police chiefs and police personnel of a city who are
classified as police officers by the council or other governing
body of the city.
(f) Police officers who are commissioned by a university under
ORS 352.383 and who are classified as police officers by the
university.
(g) Parole and probation officers employed by the Department of
Corrections, parole and probation officers who are transferred to
county employment under ORS 423.549 and adult parole and
probation officers, as defined in ORS 181.610, who are classified
as police officers for the purposes of this chapter by the county
governing body. If a county classifies adult parole and probation
officers as police officers for the purposes of this chapter, and
the employees so classified are represented by a labor
organization, any proposal by the county to change that
classification or to cease to classify adult parole and probation
officers as police officers for the purposes of this chapter is a
mandatory subject of bargaining.
(h) Police officers appointed under ORS 276.021 or 276.023.
(i) Employees of the Port of Portland who are classified as
airport police by the Board of Commissioners of the Port of
Portland.
(j) Employees of the State Department of Agriculture who are
classified as livestock police officers by the Director of
Agriculture.
(k) Employees of the Department of Public Safety Standards and
Training who are classified by the department as other than
secretarial or clerical personnel.
(L) Investigators of the Criminal Justice Division of the
Department of Justice.
(m) Corrections officers as defined in ORS 181.610.
(n) Employees of the Oregon State Lottery Commission who are
classified by the Director of the Oregon State Lottery as
enforcement agents pursuant to ORS 461.110.
(o) The Director of the Department of Corrections.
(p) An employee who for seven consecutive years has been
classified as a police officer as defined by this section, and
who is employed or transferred by the Department of Corrections
to fill a position designated by the Director of the Department
of Corrections as being eligible for police officer status.
(q) An employee of the Department of Corrections classified as
a police officer on or prior to July 27, 1989, whether or not
that classification was authorized by law, as long as the
employee remains in the position held on July 27, 1989. The
initial classification of an employee under a system implemented
pursuant to ORS 240.190 does not affect police officer status.
(r) Employees of a school district who are appointed and duly
sworn members of a law enforcement agency of the district as
provided in ORS 332.531 or otherwise employed full-time as police
officers commissioned by the district.
(s) Employees at youth correction facilities and juvenile
detention facilities under ORS 419A.050, 419A.052 and 420.005 to
420.915 who are required to hold valid Oregon teaching licenses
and who have supervisory, control or teaching responsibilities
over juveniles committed to the custody of the Department of
Corrections or the Oregon Youth Authority.
(t) Employees at youth correction facilities as defined in ORS
420.005 whose primary job description involves the custody,
control, treatment, investigation or supervision of juveniles
placed in such facilities.
(u) Employees of the Oregon Youth Authority who are classified
as juvenile parole and probation officers.
(20) 'Prior service credit' means credit provided under ORS
238.442 or under ORS 238.225 (2) to (6) (1999 Edition).
(21) 'Public employer' means the state, one of its agencies,
any city, county, or municipal or public corporation, any
political subdivision of the state or any instrumentality
thereof, or an agency created by one or more such governmental
organizations to provide governmental services. For purposes of
this chapter, such agency created by one or more governmental
organizations is a governmental instrumentality and a legal
entity with power to enter into contracts, hold property and sue
and be sued.
(22) 'Qualifying position' means one or more jobs with one or
more participating public employers in which an employee performs
600 or more hours of service in a calendar year, excluding any
service in a job for which a participating public employer does
not provide benefits under this chapter pursuant to an
application made under ORS 238.035.
(23) 'Regular account' means the account established for each
active and inactive member under ORS 238.250.
(24) 'Retired member' means a member who is retired for service
or disability.
(25) 'Retirement credit' means a period of time that is treated
as creditable service for the purposes of this chapter.
(26)(a) 'Salary' means the remuneration paid an employee in
cash out of the funds of a public employer in return for services
to the employer, plus the monetary value, as determined by the
Public Employees Retirement Board, of whatever living quarters,
board, lodging, fuel, laundry and other advantages the employer
furnishes the employee in return for services.
(b) 'Salary' includes but is not limited to:
(A) Payments of employee and employer money into a deferred
compensation plan, which are deemed salary paid in each month of
deferral;
(B) The amount of participation in a tax-sheltered or deferred
annuity, which is deemed salary paid in each month of
participation;
(C) Retroactive payments described in ORS 238.008; and
(D) Wages of a deceased member paid to a surviving spouse or
dependent children under ORS 652.190.
(c) 'Salary' or 'other advantages' does not include:
(A) Travel or any other expenses incidental to employer's
business which is reimbursed by the employer;
(B) Payments for insurance coverage by an employer on behalf of
employee or employee and dependents, for which the employee has
no cash option;
(C) Payments made on account of an employee's death;
(D) Any lump sum payment for accumulated unused sick leave;
(E) Any accelerated payment of an employment contract for a
future period or an advance against future wages;
(F) Any retirement incentive, retirement severance pay,
retirement bonus or retirement gratuitous payment;
(G) Payments for periods of leave of absence after the date the
employer and employee have agreed that no future services
qualifying pursuant to ORS 238.015 (3) will be performed { - ,
except for sick leave and vacation - } ;
(H) Payments for instructional services rendered to public
universities of the Oregon University System or the Oregon Health
and Science University when such services are in excess of
full-time employment subject to this chapter. A person employed
under a contract for less than 12 months is subject to this
subparagraph only for the months to which the contract pertains;
{ - or - }
(I) Payments made by an employer for insurance coverage
provided to a domestic partner of an employee { - . - } { + ;
(J) Any lump sum payment for accumulated unused vacation leave
or other unused paid leave; or
(K) Payments for overtime. + }
(27) 'School year' means the period beginning July 1 and ending
June 30 next following.
(28) 'System' means the Public Employees Retirement System.
(29) 'Variable account' means the account established for a
member who participates in the Variable Annuity Account under ORS
238.260.
(30) 'Vested' means being an active member of the system in
each of five calendar years.
(31) 'Volunteer firefighter' means a firefighter whose position
normally requires less than 600 hours of service per year.
SECTION 8. ORS 238.285 is amended to read:
238.285. (1) Not earlier than two years before a member's
earliest service retirement age, a member may request a
verification of retirement data from the Public Employees
Retirement Board. Upon receiving a request under this section,
the board shall notify all of the member's participating public
employers of the request. In a manner specified by rules of the
board, the board shall allow those employers a reasonable time to
confirm the records relating to the member that were provided to
the board before the request was made. The board shall thereafter
provide a verification to the member that includes the following
data, as reflected in the records of the Public Employees
Retirement System:
(a) The service information reported by the member's employers
and the number of years and months of creditable service or
retirement credit derived from that information, determined as of
a date specified in the verification.
(b) The salary data reported by the member's employers for each
calendar year, and the final average salary for the member
derived from that data.
(c) If applicable, the member's regular account balance, and
any variable account balance, as of the end of a calendar year
specified in the verification.
{ - (d) If applicable, the total amount of unused sick leave
accumulated by the member as of a date specified in the
verification. - }
(2) A member of the system may dispute the accuracy of the data
provided in the verification by filing a written notice of
dispute with the board not more than 60 days after the date on
which the verification is provided to the member. Upon receiving
a notice of dispute under this subsection, the board shall
determine the accuracy of the disputed data and make a written
decision based on its determination. The board shall provide to
the member a copy of the decision and a written explanation of
any applicable statutes and rules. A member may seek judicial
review of the decision as provided in ORS 183.484 and rules of
the board.
(3) Except as provided in this section, when a member who
receives a verification under this section retires for service,
the creditable service, retirement credit, final average salary
{ - , - } { + and + } member account balances { - and
accumulated unused sick leave - } used in calculating the
member's retirement allowance or pension may not be less than the
amounts provided in the verification, subject to adjustments for:
(a) Creditable service or retirement credit accrued by the
member after the date specified in the verification.
(b) Salary attributable to periods of employment after the date
specified in the verification.
(c) Earnings and losses credited to the member's accounts from
the end of the calendar year specified in the verification to the
member's effective retirement date, in accordance with rules
adopted by the board.
{ - (d) Sick leave used and accrued after the date specified
in the verification. - }
(4) The board may use creditable service, retirement credit,
final average salary { - , - } { + or + } member account
balances { - or accumulated unused sick leave - } in
calculating a member's service retirement allowance that is less
than the amounts provided in a verification received under this
section if the member knew that the amounts were not accurate at
the time the verification was provided and the member did not
dispute the accuracy of the amounts as provided in subsection (2)
of this section.
(5) A participating public employer may not modify information
provided to the board relating to a member's creditable service,
retirement credit, final average salary { - , - } { + or + }
employee contributions { - or accumulated unused sick leave - }
after the board provides the member with a verification under
this section that is based on that information except in response
to the board's request for the purpose of a determination under
subsection (2) or (4) of this section.
(6)(a) Subject to paragraph (b) of this subsection, erroneous
payments or overpayments paid to or on account of a member based
on a verification provided under this section may not be
recovered under ORS 238.715, but may be charged to the reserve
account established under ORS 238.670 (1), or charged as an
administrative expense under ORS 238.610.
(b) The board shall recover erroneous payments or overpayments
paid to or on account of a member based on a verification
provided under this section if the board determines that the
recovery is required to maintain the status of the system and the
Public Employees Retirement Fund as a qualified governmental
retirement plan and trust under the Internal Revenue Code and
under regulations adopted pursuant to the Internal Revenue Code.
(7) A member may dispute the accuracy of data in a verification
only as provided under this section. A member may not dispute the
accuracy of data in a verification in the manner provided by ORS
238.450.
(8) A member shall be provided with one verification under this
section at no cost. The board may establish procedures for
recovering administrative costs from members for services in
providing additional verifications.
SECTION 9. Section 4, chapter 1, Oregon Laws 2010, is amended
to read:
{ + Sec. 4. + } { - (1) Except as provided in this section,
section 3 of this 2009 Act - } { + ORS 238.285 + } becomes
operative on July 1, 2011.
{ - (2) The requirement that the Public Employees Retirement
Board provide verification of the amount of a member's
accumulated unused sick leave under section 3 (1)(d) of this 2009
Act first applies to requests for verifications of retirement
data received by the board on or after July 1, 2012. - }
SECTION 10. ORS 238.580 is amended to read:
238.580. (1) ORS 238.005 (4) and (26), 238.025, 238.078,
238.082, 238.092, 238.115 (1), 238.250, 238.255, 238.260,
{ - 238.350, - } 238.364, 238.410, 238.415, 238.420, 238.445,
238.458, 238.460, 238.465, 238.475, 238.600, 238.605, 238.610,
238.618, 238.630, 238.635, 238.645, 238.650, 238.655, 238.660,
238.665, 238.670 and 238.705 and the increases provided by ORS
238.366 for members of the system who are serving as other than
police officers or firefighters apply in respect to service as a
judge member.
(2) This chapter applies in respect to persons described in ORS
238.505 (1) and in respect to service as a judge member only as
specifically provided in ORS 238.500 to 238.585.
SECTION 11. ORS 292.180 is amended to read:
292.180. (1) The Oregon Department of Administrative Services
may render a monthly or quarterly invoice to all state agencies
utilizing or intending to utilize the joint payroll system in the
future. This monthly or quarterly invoice shall be equal to
demonstrated savings of Workers' Compensation workday tax costs
which are a direct result of the savings from payment of the
workday tax based on actual days worked by the employee.
(2) It is the intention of this section to allow the department
to use demonstrated savings of Workers' Compensation workday tax
costs to pay for the implementation costs of ORS
{ - 238.350, - } 240.546, 292.026, 292.033, 292.070 to
292.110, 292.170 and this section and the moneys received are
continuously appropriated for the purposes of ORS
{ - 238.350, - } 240.546, 292.026, 292.033, 292.070 to 292.110,
292.170 and this section.
(3) Any excess moneys remaining after the implementation of ORS
{ - 238.350, - } 240.546, 292.026, 292.033, 292.070 to 292.110,
292.170 and this section shall be returned pro rata on the basis
of total moneys to agency contributions to the agencies from
which received. However, if the amount remaining is less than
$10,000, that amount may be transferred to the General Fund as a
miscellaneous receipt.
SECTION 12. { + The amendments to ORS 238.005, 238.580 and
292.180 by sections 7, 10 and 11 of this 2013 Act and the repeal
of ORS 238.350 and 238.355 by section 6 of this 2013 Act apply
only to members of the Public Employees Retirement System who
retire on or after the effective date of this 2013 Act. + }
{ +
TAXATION OF OUT-OF-STATE RETIREES + }
SECTION 13. ORS 238.372 is amended to read:
238.372. (1) Except as provided in ORS 238.372 to 238.384, the
Public Employees Retirement Board may not pay the increased
{ - benefit - } { + benefits + } provided by { + chapter
796, Oregon Laws 1991, or + } chapter 569, Oregon Laws 1995, if
the board receives notice under ORS 238.372 to 238.384 that the
payments made to the person under this chapter are not subject to
Oregon personal income tax under ORS 316.127 (9).
{ - (2) The provisions of ORS 238.372 to 238.384 do not apply
to: - }
{ - (a) A retired member of the system who is receiving
payments under this chapter and whose effective date of
retirement is before January 1, 2012; - }
{ - (b) A person who is receiving payments under this chapter
by reason of the retirement of a member whose effective date of
retirement is before January 1, 2012; and - }
{ - (c) Any other person who receives payments under this
chapter that began before January 1, 2012. - }
{ - (3) - } { + (2) + } The board shall give written
notification of the provisions of ORS 238.372 to 238.384 to all
persons applying for or receiving payments under this chapter.
{ - (4) - } { + (3) + } A person receiving payments under
this chapter that are not increased under { + chapter 796,
Oregon Laws 1991, or + } chapter 569, Oregon Laws 1995, by reason
of ORS 238.372 to 238.384 has no right or claim to the increased
benefit provided by { + chapter 796, Oregon Laws 1991, or + }
chapter 569, Oregon Laws 1995, except as provided in ORS 238.372
to 238.384.
SECTION 14. { + Section 15 of this 2013 Act is added to and
made a part of ORS 238.372 to 238.384. + }
SECTION 15. { + (1) On or before October 31, 2013, each person
receiving payments under this chapter shall provide the Public
Employees Retirement Board with a written statement that
indicates whether the payments received by the person are subject
to Oregon personal income tax.
(2) If a person receiving payments under this chapter does not
notify the board on or before October 31, 2013, that the payments
are subject to Oregon personal income tax, the board shall reduce
any benefits payable to the person by the amount by which the
benefits were increased under chapter 796, Oregon Laws 1991, and
chapter 569, Oregon Laws 1995. The reduction in benefits becomes
effective on January 1, 2014. + }
SECTION 16. { + Section 15 of this 2013 Act is repealed on
December 31, 2014. + }
SECTION 17. ORS 238.374 is amended to read:
238.374. (1) A person applying for payments under this chapter
shall give a written statement to the Public Employees Retirement
Board that indicates whether the payments will be subject to
Oregon personal income tax under ORS 316.127 (9). If the person
fails to provide the statement required by this subsection, or
the statement indicates that the payments will not be subject to
Oregon personal income tax under ORS 316.127 (9), the board may
not pay the person the increased { - benefit - } { +
benefits + } provided by { + chapter 796, Oregon Laws 1991,
or + } chapter 569, Oregon Laws 1995.
(2) If a person is receiving payments under this chapter that
have not been increased under { + chapter 796, Oregon Laws 1991,
or + } chapter 569, Oregon Laws 1995, by reason of the provisions
of subsection (1) of this section, and thereafter the payments
become subject to Oregon personal income tax, the person shall
promptly notify the Public Employees Retirement Board by written
statement that the payments are subject to Oregon personal income
tax.
(3) If a person is receiving payments under this chapter that
have not been increased under { + chapter 796, Oregon Laws 1991,
or + } chapter 569, Oregon Laws 1995, by reason of the provisions
of subsection (1) of this section, and the board receives notice
under subsection (2) of this section that payments to the person
under this chapter are subject to Oregon personal income tax, or
determines under ORS 238.378 that payments to the person under
this chapter are subject to Oregon personal income tax, the board
shall initiate payment of the increased { - benefit - } { +
benefits + } provided by { + chapter 796, Oregon Laws 1991,
and + } chapter 569, Oregon Laws 1995. The increase in benefits
becomes effective on the first day of the calendar year following
receipt of notice by the board.
SECTION 18. ORS 238.376 is amended to read:
238.376. (1) If a person is receiving payments under this
chapter, and after the payments commence the payments cease to be
subject to Oregon personal income tax under ORS 316.127 (9), the
person shall promptly notify the Public Employees Retirement
Board by written statement that the payments are no longer
subject to Oregon personal income tax. The board shall reduce any
benefits payable to the person by the amount by which the
benefits were increased under { + chapter 796, Oregon Laws 1991,
and + } chapter 569, Oregon Laws 1995. The reduction in benefits
becomes effective on the first day of the calendar year following
receipt of notice by the board.
(2) If a person is receiving payments under this chapter that
have been reduced { - under the provisions of subsection (1) of
this section - } { + because the payments are not subject to
Oregon personal income tax + }, and thereafter the payments
become subject to Oregon personal income tax, the person shall
promptly notify the board by written statement that the payments
are once again subject to Oregon personal income tax.
(3) If a person is receiving payments under this chapter that
have been reduced { - under the provisions of subsection (1) of
this section - } { + because the payments are not subject to
Oregon personal income tax + }, and the board receives notice
under subsection (2) of this section that payments to the person
under this chapter are once again subject to Oregon personal
income tax, or determines under ORS 238.378 that payments to the
person under this chapter are once again subject to Oregon
personal income tax, the board shall resume payment of the
increased { - benefit - } { + benefits + } provided by
{ + chapter 796, Oregon Laws 1991, and + } chapter 569, Oregon
Laws 1995. The increase in benefits becomes effective on the
first day of the calendar year following receipt of notice by the
board.
SECTION 19. ORS 238.378 is amended to read:
238.378. (1) Not less than once each calendar year, the Public
Employees Retirement Board shall provide to the Department of
Revenue information identifying persons to whom payments have
been made under this chapter. The Department of Revenue shall
provide to the board such information on Oregon personal income
tax returns as the board deems necessary to determine whether the
payments made to the person under this chapter are subject to
Oregon personal income tax under ORS 316.127 (9).
(2) If the board determines that the payments made to a person
under this chapter are not subject to Oregon personal income tax
under ORS 316.127 (9) based on information provided by the
Department of Revenue under this section, and the person is
receiving the increased benefit provided by { + chapter 796,
Oregon Laws 1991, or + } chapter 569, Oregon Laws 1995, the board
shall reduce the benefits payable to the person as provided in
ORS 238.376 (1).
(3) If the board determines that the payments made to a person
under this chapter are subject to Oregon personal income tax
based on information provided by the Department of Revenue under
this section, and the person is not receiving the increased
benefit provided by { + chapter 796, Oregon Laws 1991, or + }
chapter 569, Oregon Laws 1995, the board shall increase the
benefits payable to the person as provided in ORS 238.374 (3) or
238.376 (3).
SECTION 20. ORS 237.635 is amended to read:
237.635. (1) Any public employer that provides retirement
benefits to its police officers and firefighters other than by
participation in the Public Employees Retirement System pursuant
to the provisions of ORS 237.620 shall provide increases to the
police officers and firefighters of the public employer, both
active and retired, that are equal to the increases in retirement
benefits that are provided for in this 1991 Act for active and
retired police officers or firefighters who are members of the
Public Employees Retirement System, or shall provide to those
police officers and firefighters increases in retirement benefits
that are the actuarial equivalent of the increases in retirement
benefits that are provided for in this 1991 Act for police
officers or firefighters who are members of the Public Employees
Retirement System. No other retirement benefit or other benefit
provided by those public employers shall be decreased by the
employer by reason of the increases mandated by this section.
(2) The increased benefits provided for in this section apply
only to police officers or firefighters who establish membership
before July 14, 1995, in a retirement plan or system offered by a
public employer in lieu of membership in the Public Employees
Retirement System pursuant to the provisions of ORS 237.620.
{ + (3) A public employer that is subject to the requirements
of this section shall cease paying increased retirement benefits
under this section if the payments made to the person are not
subject to Oregon personal income tax under ORS 316.127 (9). A
public employer that is subject to the requirements of this
section shall adopt procedures similar to those described in ORS
238.372 to 238.384 for the purpose of implementing this
subsection. The Department of Revenue shall provide to a public
employer that is subject to the requirements of this section the
information regarding Oregon personal income tax returns that the
public employer deems necessary to determine whether the
retirement benefits paid to the person by the public employer are
subject to Oregon personal income tax under ORS 316.127 (9). + }
SECTION 21. ORS 237.637 is amended to read:
237.637. (1) Any public employer that provides retirement
benefits to its police officers and firefighters other than by
participation in the Public Employees Retirement System pursuant
to the provisions of ORS 237.620 shall provide increases to the
police officers and firefighters of the public employer, both
active and retired, that are equal to the increases in retirement
benefits that are provided for in chapter 569, Oregon Laws 1995,
for active and retired police officers or firefighters who are
members of the Public Employees Retirement System, or the public
employer shall provide to those police officers and firefighters
increases in retirement benefits that are the actuarial
equivalent of the increases in retirement benefits that are
provided for in chapter 569, Oregon Laws 1995, for police
officers or firefighters who are members of the Public Employees
Retirement System. Increases provided under this section shall
be reduced by the amount of any benefit increase provided by ORS
237.635 in the same manner that increases in retirement benefits
that are provided for in chapter 569, Oregon Laws 1995, for
active and retired police officers or firefighters who are
members of the Public Employees Retirement System are reduced to
reflect amounts paid to those members under the provisions of
chapter 796, Oregon Laws 1991. No other retirement benefit or
other benefit provided by those public employers shall be
decreased by the employer by reason of the increases mandated by
this section.
(2) A public employer that is subject to the requirements of
this section shall cease paying increased { + retirement + }
benefits under this section if the payments made to the person
are not subject to Oregon personal income tax under ORS 316.127
(9). A public employer that is subject to the requirements of
this section shall adopt procedures similar to those described in
ORS 238.372 to 238.384 for the purpose of implementing this
subsection. The Department of Revenue shall provide to a public
employer that is subject to the requirements of this section
{ - such - } { + the + } information regarding Oregon
personal income tax returns { - as - } { + that + } the
public employer deems necessary to determine whether the
retirement benefits paid to the person by the public employer are
subject to Oregon personal income tax under ORS 316.127 (9).
{ - (3) The provisions of subsection (2) of this section do
not apply to: - }
{ - (a) A retired police officer or firefighter who is
receiving payments under the public employer's plan and whose
effective date of retirement is before January 1, 2012; - }
{ - (b) A person who is receiving payments under the public
employer's plan by reason of the retirement of a police officer
or firefighter whose effective date of retirement is before
January 1, 2012; and - }
{ - (c) Any other person who receives payments under the
public employer's plan that began before January 1, 2012. - }
SECTION 22. ORS 314.840, as amended by section 11, chapter 107,
Oregon Laws 2012, is amended to read:
314.840. (1) The Department of Revenue may:
(a) Furnish any taxpayer, representative authorized to
represent the taxpayer under ORS 305.230 or person designated by
the taxpayer under ORS 305.193, upon request of the taxpayer,
representative or designee, with a copy of the taxpayer's income
tax return filed with the department for any year, or with a copy
of any report filed by the taxpayer in connection with the
return, or with any other information the department considers
necessary.
(b) Publish lists of taxpayers who are entitled to unclaimed
tax refunds.
(c) Publish statistics so classified as to prevent the
identification of income or any particulars contained in any
report or return.
(d) Disclose a taxpayer's name, address, telephone number,
refund amount, amount due, Social Security number, employer
identification number or other taxpayer identification number to
the extent necessary in connection with collection activities or
the processing and mailing of correspondence or of forms for any
report, return or claim required in the administration of ORS
310.630 to 310.706, any local tax under ORS 305.620, or any law
imposing a tax upon or measured by net income.
(2) The department also may disclose and give access to
information described in ORS 314.835 to:
(a) The Governor of the State of Oregon or the authorized
representative of the Governor:
(A) With respect to an individual who is designated as being
under consideration for appointment or reappointment to an office
or for employment in the office of the Governor. The information
disclosed shall be confined to whether the individual:
(i) Has filed returns with respect to the taxes imposed by ORS
chapter 316 for those of not more than the three immediately
preceding years for which the individual was required to file an
Oregon individual income tax return.
(ii) Has failed to pay any tax within 30 days from the date of
mailing of a deficiency notice or otherwise respond to a
deficiency notice within 30 days of its mailing.
(iii) Has been assessed any penalty under the Oregon personal
income tax laws and the nature of the penalty.
(iv) Has been or is under investigation for possible criminal
offenses under the Oregon personal income tax laws. Information
disclosed pursuant to this paragraph shall be used only for the
purpose of making the appointment, reappointment or decision to
employ or not to employ the individual in the office of the
Governor.
(B) For use by an officer or employee of the Oregon Department
of Administrative Services duly authorized or employed to prepare
revenue estimates, or a person contracting with the Oregon
Department of Administrative Services to prepare revenue
estimates, in the preparation of revenue estimates required for
the Governor's budget under ORS 291.201 to 291.226, or required
for submission to the Emergency Board or the Joint Interim
Committee on Ways and Means, or if the Legislative Assembly is in
session, to the Joint Committee on Ways and Means, and to the
Legislative Revenue Officer or Legislative Fiscal Officer under
ORS 291.342, 291.348 and 291.445. The Department of Revenue shall
disclose and give access to the information described in ORS
314.835 for the purposes of this subparagraph only if:
(i) The request for information is made in writing, specifies
the purposes for which the request is made and is signed by an
authorized representative of the Oregon Department of
Administrative Services. The form for request for information
shall be prescribed by the Oregon Department of Administrative
Services and approved by the Director of the Department of
Revenue.
(ii) The officer, employee or person receiving the information
does not remove from the premises of the Department of Revenue
any materials that would reveal the identity of a personal or
corporate taxpayer.
(b) The Commissioner of Internal Revenue or authorized
representative, for tax administration and compliance purposes
only.
(c) For tax administration and compliance purposes, the proper
officer or authorized representative of any of the following
entities that has or is governed by a provision of law that meets
the requirements of any applicable provision of the Internal
Revenue Code as to confidentiality:
(A) A state;
(B) A city, county or other political subdivision of a state;
(C) The District of Columbia; or
(D) An association established exclusively to provide services
to federal, state or local taxing authorities.
(d) The Multistate Tax Commission or its authorized
representatives, for tax administration and compliance purposes
only. The Multistate Tax Commission may make the information
available to the Commissioner of Internal Revenue or the proper
officer or authorized representative of any governmental entity
described in and meeting the qualifications of paragraph (c) of
this subsection.
(e) The Attorney General, assistants and employees in the
Department of Justice, or other legal representative of the State
of Oregon, to the extent the department deems disclosure or
access necessary for the performance of the duties of advising or
representing the department pursuant to ORS 180.010 to 180.240
and the tax laws of this state.
(f) Employees of the State of Oregon, other than of the
Department of Revenue or Department of Justice, to the extent the
department deems disclosure or access necessary for such
employees to perform their duties under contracts or agreements
between the department and any other department, agency or
subdivision of the State of Oregon, in the department's
administration of the tax laws.
(g) Other persons, partnerships, corporations and other legal
entities, and their employees, to the extent the department deems
disclosure or access necessary for the performance of such
others' duties under contracts or agreements between the
department and such legal entities, in the department's
administration of the tax laws.
(h) The Legislative Revenue Officer or authorized
representatives upon compliance with ORS 173.850. Such officer or
representative shall not remove from the premises of the
department any materials that would reveal the identity of any
taxpayer or any other person.
(i) The Department of Consumer and Business Services, to the
extent the department requires such information to determine
whether it is appropriate to adjust those workers' compensation
benefits the amount of which is based pursuant to ORS chapter 656
on the amount of wages or earned income received by an
individual.
(j) Any agency of the State of Oregon, or any person, or any
officer or employee of such agency or person to whom disclosure
or access is given by state law and not otherwise referred to in
this section, including but not limited to the Secretary of State
as Auditor of Public Accounts under section 2, Article VI of the
Oregon Constitution; the Department of Human Services pursuant to
ORS 314.860 and 412.094; the Division of Child Support of the
Department of Justice and district attorney regarding cases for
which they are providing support enforcement services under ORS
25.080; the State Board of Tax Practitioners, pursuant to ORS
673.710; and the Oregon Board of Accountancy, pursuant to ORS
673.415.
(k) The Director of the Department of Consumer and Business
Services to determine that a person complies with ORS chapter 656
and the Director of the Employment Department to determine that a
person complies with ORS chapter 657, the following employer
information:
(A) Identification numbers.
(B) Names and addresses.
(C) Inception date as employer.
(D) Nature of business.
(E) Entity changes.
(F) Date of last payroll.
(L) The Director of Human Services to determine that a person
has the ability to pay for care that includes services provided
by the Eastern Oregon Training Center or the Department of Human
Services to collect any unpaid cost of care as provided by ORS
chapter 179.
(m) The Director of the Oregon Health Authority to determine
that a person has the ability to pay for care that includes
services provided by the Blue Mountain Recovery Center or the
Oregon State Hospital or the Oregon Health Authority to collect
any unpaid cost of care as provided by ORS chapter 179.
(n) Employees of the Employment Department to the extent the
Department of Revenue deems disclosure or access to information
on a combined tax report filed under ORS 316.168 is necessary to
performance of their duties in administering the tax imposed by
ORS chapter 657.
(o) The State Fire Marshal to assist the State Fire Marshal in
carrying out duties, functions and powers under ORS 453.307 to
453.414, the employer or agent name, address, telephone number
and standard industrial classification, if available.
(p) Employees of the Department of State Lands for the purposes
of identifying, locating and publishing lists of taxpayers
entitled to unclaimed refunds as required by the provisions of
chapter 694, Oregon Laws 1993. The information shall be limited
to the taxpayer's name, address and the refund amount.
(q) In addition to the disclosure allowed under ORS 305.225,
state or local law enforcement agencies to assist in the
investigation or prosecution of the following criminal
activities:
(A) Mail theft of a check, in which case the information that
may be disclosed shall be limited to the stolen document, the
name, address and taxpayer identification number of the payee,
the amount of the check and the date printed on the check.
(B) The counterfeiting, forging or altering of a check
submitted by a taxpayer to the Department of Revenue or issued by
the Department of Revenue to a taxpayer, in which case the
information that may be disclosed shall be limited to the
counterfeit, forged or altered document, the name, address and
taxpayer identification number of the payee, the amount of the
check, the date printed on the check and the altered name and
address.
(r) The United States Postal Inspection Service or a federal
law enforcement agency, including but not limited to the United
States Department of Justice, to assist in the investigation of
the following criminal activities:
(A) Mail theft of a check, in which case the information that
may be disclosed shall be limited to the stolen document, the
name, address and taxpayer identification number of the payee,
the amount of the check and the date printed on the check.
(B) The counterfeiting, forging or altering of a check
submitted by a taxpayer to the Department of Revenue or issued by
the Department of Revenue to a taxpayer, in which case the
information that may be disclosed shall be limited to the
counterfeit, forged or altered document, the name, address and
taxpayer identification number of the payee, the amount of the
check, the date printed on the check and the altered name and
address.
(s) The United States Financial Management Service, for
purposes of facilitating the offsets described in ORS 305.612.
(t) A municipal corporation of this state for purposes of
assisting the municipal corporation in the administration of a
tax of the municipal corporation that is imposed on or measured
by income, wages or net earnings from self-employment. Any
disclosure under this paragraph may be made only pursuant to a
written agreement between the Department of Revenue and the
municipal corporation that ensures the confidentiality of the
information disclosed.
(u) A consumer reporting agency, to the extent necessary to
carry out the purposes of ORS 314.843.
(v) The Public Employees Retirement Board, to the extent
necessary to carry out the purposes of ORS 238.372 to 238.384,
and to any public employer, to the extent necessary to carry out
the purposes of ORS { + 237.635 (3) and + } 237.637 (2).
(3)(a) Each officer or employee of the department and each
person described or referred to in subsection (2)(a), (e) to (k)
or (n) to (q) of this section to whom disclosure or access to the
tax information is given under subsection (2) of this section or
any other provision of state law, prior to beginning employment
or the performance of duties involving such disclosure or access,
shall be advised in writing of the provisions of ORS 314.835 and
314.991, relating to penalties for the violation of ORS 314.835,
and shall as a condition of employment or performance of duties
execute a certificate for the department, in a form prescribed by
the department, stating in substance that the person has read
these provisions of law, that the person has had them explained
and that the person is aware of the penalties for the violation
of ORS 314.835.
(b) The disclosure authorized in subsection (2)(r) of this
section shall be made only after a written agreement has been
entered into between the Department of Revenue and the person
described in subsection (2)(r) of this section to whom disclosure
or access to the tax information is given, providing that:
(A) Any information described in ORS 314.835 that is received
by the person pursuant to subsection (2)(r) of this section is
confidential information that may not be disclosed, except to the
extent necessary to investigate or prosecute the criminal
activities described in subsection (2)(r) of this section;
(B) The information shall be protected as confidential under
applicable federal and state laws; and
(C) The United States Postal Inspection Service or the federal
law enforcement agency shall give notice to the Department of
Revenue of any request received under the federal Freedom of
Information Act, 5 U.S.C. 552, or other federal law relating to
the disclosure of information.
(4) The Department of Revenue may recover the costs of
furnishing the information described in subsection (2)(k) to (m)
and (o) to (q) of this section from the respective agencies.
{ +
TRANSFER OF EMPLOYEE CONTRIBUTIONS + }
SECTION 23. { + Sections 24, 25 and 26 of this 2013 Act are
added to and made a part of ORS chapter 238A. + }
SECTION 24. { + (1) A member who established membership in the
Public Employees Retirement System before August 29, 2003, as
described in ORS 238A.025 (4), ceases to be a member of the
individual account program on the effective date of this 2013
Act.
(2) A member who established membership in the Public Employees
Retirement System before August 29, 2003, as described in ORS
238A.025 (4), and who is a member of the individual account
program on the effective date of this 2013 Act, continues to be a
member for the purpose of amounts in the employee account
established for the member under ORS 238A.350 (2), and the Public
Employees Retirement Board shall continue to make adjustments to
the account in the manner prescribed by ORS 238A.350 (1) on and
after the effective date of this 2013 Act, but no further
employee contributions may be deposited in the account on or
after the effective date of this 2013 Act by reason of service by
the member.
(3) Employee contributions under ORS 238A.330 made on or after
the effective date of this 2013 Act by or on behalf of a member
who established membership in the Public Employees Retirement
System before August 29, 2003, as described in ORS 238A.025 (4),
may not be deposited by the Public Employees Retirement Board in
the employee account established for the member under ORS
238A.350 (2), but shall instead be deposited in the account
established for the member under section 25 of this 2013 Act. + }
SECTION 25. { + (1) The Public Employees Retirement Board
shall establish an account for each active member of the Public
Employees Retirement System who established membership in the
system before August 29, 2003, as described in ORS 238A.025 (4).
Each account shall be adjusted at least annually in accordance
with rules adopted by the board to reflect any net earnings or
losses on those contributions. The adjustments described in this
subsection shall continue until the account is withdrawn or
applied against the costs of the pension or other retirement
benefits payable to the member.
(2) Unless the amounts in an account created under this section
are withdrawn under section 26 of this 2013 Act, the amounts in
the account shall be applied by the board to pay the costs of the
pension or other retirement benefits payable to or on behalf of
the member. + }
SECTION 26. { + (1) An inactive member may elect to receive a
distribution of the amounts in the member's account established
under section 25 of this 2013 Act if the inactive member has
separated from all service with participating public employers
and with employers who are treated as part of a participating
public employer's controlled group under the federal laws and
rules governing the status of the Public Employees Retirement
System and the Public Employees Retirement Fund as a qualified
governmental retirement plan and trust.
(2) A member who is vested in the pension program established
under this chapter and who is eligible to withdraw from the
pension program under ORS 238A.120 may make an election under
this section only if the member also withdraws from the pension
program. + }
SECTION 27. ORS 238A.320 is amended to read:
238A.320. (1) A member of the individual account program
becomes vested in the employee account established for the member
under ORS 238A.350 (2) on the date the employee account is
established.
(2) A member who makes rollover contributions becomes vested in
the rollover account established for the member under ORS
238A.350 (4) on the date the rollover account is established.
(3) Except as provided in subsection (4) of this section, if an
employer makes employer contributions for a member under ORS
238A.340 the member becomes vested in the employer account
established under ORS 238A.350 (3) on the earliest of the
following dates:
(a) The date on which the member completes at least 600 hours
of service in each of five calendar years. The five calendar
years need not be consecutive, but are subject to the provisions
of subsection (5) of this section.
(b) The date on which an active member reaches the normal
retirement age for the member under ORS 238A.160.
(c) If the individual account program is terminated, the date
on which termination becomes effective, but only to the extent
the account is then funded.
(d) The date on which an active member becomes disabled, as
described in ORS 238A.155 (5).
(e) The date on which an active member dies.
(4) If on the date that a person becomes an active member the
person has already reached the normal retirement age for the
person under ORS 238A.160, and the employer makes employer
contributions for the member under ORS 238A.340, the person is
vested in the employer account established under ORS 238A.350 (3)
on that date.
(5) If a member of the individual account program who is not
vested in the employer account performs fewer than 600 hours of
service in each of five consecutive calendar years, hours of
service performed before the first calendar year of the period of
five consecutive calendar years shall be disregarded for purposes
of determining whether the member is vested under subsection
(3)(a) of this section.
(6) Solely for purposes of determining whether a member is
vested under subsection (3)(a) of this section, hours of service
include creditable service, as defined in ORS 238.005, performed
by the person before the person became an eligible employee, as
long as the membership of the person under ORS chapter 238 has
not been terminated under the provisions of ORS 238.095 on the
date the person becomes an eligible employee.
{ + (7) A member becomes vested in the account established
for the member under section 25 of this 2013 Act on the date the
account is established under section 25 of this 2013 Act. + }
{ +
ASSUMED INTEREST RATE FOR + }
{ +
CALCULATION OF MONEY MATCH + }
SECTION 28. ORS 238.300 is amended to read:
238.300. Upon retiring from service at normal retirement age or
thereafter, a member of the system shall receive a service
retirement allowance which shall consist of the following annuity
and pensions:
(1) A refund annuity which shall be the actuarial equivalent of
accumulated contributions, if any, by the member and interest
thereon credited at the time of retirement, which annuity shall
provide an allowance payable during the life of the member and at
death a lump sum equal in amount to the difference between
accumulated contributions at the time of retirement and the sum
of the annuity payments actually made to the member during life
shall be paid to such person, if any, as the member nominates by
written designation duly acknowledged and filed with the
{ + Public Employees Retirement + } Board or shall otherwise be
paid according to the provisions of this chapter for disposal of
an amount credited to the member account of a member at the time
of death in the event the member designates no beneficiary to
receive the amount or no such beneficiary is able to receive the
amount. If death of the member occurs before the first payment is
due, the member account of the member shall be treated as though
death had occurred before retirement.
(2)(a) A life pension (nonrefund) for current service provided
by the contributions of employers, which pension, subject to
paragraph (b) of this subsection, shall be an amount which, when
added to the sum of the annuity, if any, under subsection (1) of
this section and the annuity, if any, provided on the same basis
and payable from the Variable Annuity Account, both annuities
considered on a refund basis, results in a total of:
(A) For service as a police officer or firefighter, two percent
of final average salary multiplied by the number of years of
membership in the system as a police officer or firefighter
before the effective date of retirement.
(B) For service as other than a police officer or firefighter,
including service as a member of the Legislative Assembly, 1.67
percent of final average salary multiplied by the number of years
of membership in the system as other than a police officer or
firefighter before the effective date of retirement.
(b) A pension under this subsection shall be at least:
(A) For a member who first establishes membership in the system
before July 1, 2003, the actuarial equivalent of the annuity
provided by the accumulated contributions of the member. { +
For purposes of calculating an annuity under this subparagraph,
the board shall use an assumed interest rate of four percent. + }
A person establishes membership in the system before July 1,
2003, for the purposes of this subparagraph if:
(i) The person is a member of the system, or a judge member of
the system, on the day immediately before July 1, 2003; or
(ii) The person performed any period of service for a
participating public employer before July 1, 2003, that is
credited to the six-month period of employment required of an
employee under ORS 238.015 before an employee may become a member
of the system.
(B) For a member who made contributions before August 21, 1981,
the equivalent of a pension computed pursuant to this subsection
as it existed immediately before that date.
(c) As used in this subsection, 'number of years of membership'
means the number of full years of creditable service plus any
remaining fraction of a year of creditable service. Except as
otherwise provided in this paragraph, in determining a remaining
fraction a full month shall be considered as one-twelfth of a
year and a major fraction of a month shall be considered as a
full month. Membership of a school district employee, an employee
of an institution of higher education engaged in teaching or
other school activity or an employee of the Department of Human
Services, the Oregon Youth Authority, the Department of
Corrections or the State Board of Education engaged in teaching
or other school activity at an institution supervised by the
authority, board or department, for all portions of a school year
in a calendar year in which the district school, institution of
higher education or school activity at an institution so
supervised in which the member is employed is normally in session
shall be considered as a full one-half year of membership. The
number of years of membership of a member who received a refund
of contributions as provided in ORS 237.976 (2) is limited to the
number of years after the day before the date on which the refund
was received. The number of years of membership of a member who
is separated, for any reason other than death or disability, from
all service entitling the member to membership in the system, who
withdraws the amount credited to the member account of the member
in the fund during absence from such service and who thereafter
reenters the service of an employer participating in the system
but does not repay the amount so withdrawn as provided in this
chapter, is limited to the number of years after the day before
the date of so reentering.
(3) An additional life pension (nonrefund) for prior service
credit, including military service, credited to the member at the
time of first becoming a member of the system, as elsewhere
provided in this chapter, which pension shall be provided by the
contributions of the employer.
{ +
EMPLOYER CONTRIBUTION RATES + }
SECTION 29. { + (1) As soon as practicable after the effective
date of this 2013 Act, the Public Employees Retirement Board
shall:
(a) Determine the savings in employer contributions that are
attributable to the provisions of this 2013 Act; and
(b) Recalculate the contribution rates of all employers,
pursuant to ORS 238.225, to reflect the provisions of this 2013
Act.
(2) The board shall issue corrected contribution rate orders to
employers affected by recalculated rates under this section
within 90 days after the effective date of this 2013 Act. The
corrected rates are effective July 1, 2013. + }
{ +
EXPEDITED REVIEW BY SUPREME COURT + }
SECTION 30. { + (1) Jurisdiction is conferred on the Supreme
Court to determine in the manner provided by this section whether
this 2013 Act breaches any contract between members of the Public
Employees Retirement System and their employers or violates any
constitutional provision, including but not limited to impairment
of contract rights of members of the Public Employees Retirement
System under Article I, section 21, of the Oregon Constitution,
or Article I, section 10, clause 1, of the United States
Constitution.
(2) A person who is adversely affected by this 2013 Act or who
will be adversely affected by this 2013 Act may institute a
proceeding for review by filing with the Supreme Court a petition
that meets the following requirements:
(a) The petition must be filed within 60 days after the
effective date of this 2013 Act.
(b) The petition must include the following:
(A) A statement of the basis of the challenge; and
(B) A statement and supporting affidavit showing how the
petitioner is adversely affected.
(3) The petitioner shall serve a copy of the petition by
registered or certified mail upon the Public Employees Retirement
Board, the Attorney General and the Governor.
(4) Proceedings for review under this section shall be given
priority over all other matters before the Supreme Court.
(5) The Supreme Court shall allow public employers
participating in the Public Employees Retirement System to
intervene in any proceeding under this section.
(6)(a) The Supreme Court shall allow members of the Legislative
Assembly to intervene in any proceeding relating to this 2013
Act. After a member intervenes in a proceeding relating to this
2013 Act, the member has standing to participate in the
proceeding even if the member ceases to be a member of the
Legislative Assembly.
(b) A member of the Senate or House of Representatives who
intervenes in a proceeding under this subsection may not use
public funds to pay legal expenses incurred in intervening or
participating in the proceeding.
(7) In the event the Supreme Court determines that there are
factual issues in the petition, the Supreme Court may appoint a
special master to hear evidence and to prepare recommended
findings of fact.
(8) The court may not award attorney fees to a petitioner in a
proceeding under this section. + }
{ +
SEVERABILITY + }
SECTION 31. { + It is the intent of the Legislative Assembly
that all parts of this 2013 Act are independent and that if any
part of this 2013 Act be held unconstitutional, all remaining
parts shall remain in force. + }
{ +
CAPTIONS + }
SECTION 32. { + The unit captions used in this 2013 Act are
provided only for the convenience of the reader and do not become
part of the statutory law of this state or express any
legislative intent in the enactment of this 2013 Act. + }
{ +
EMERGENCY CLAUSE + }
SECTION 33. { + This 2013 Act being necessary for the
immediate preservation of the public peace, health and safety, an
emergency is declared to exist, and this 2013 Act takes effect on
its passage. + }
----------